SAN ANTONIO-The Bascom Group LLC has acquired the 360-unitRetreat at Canyon Springs through a receivership sale. The Irvine,CA-based buyer purchased the class A apartment community for anundisclosed amount. However, local experts note that similar assetswithout any distress trade for $80,000 to $100,000 per unit.

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The Retreat at Canyon Springs was owned MBS Cos. The Metairie,LA-based firm, which owned 65 apartment complexes totaling about17,000 units in Texas, has several million dollars worth of loansin receivership.

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Most of the CMBS loans were originated by PNC Financial ServicesGroup, according to industry experts. The special servicer, whichprovided assumable financing for the acquisition, was Midland LoanServices.

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The Retreat at Canyon Springs is one of largest class A tradesso far this year, according to Ryan Epstein with Marcus &Millichap’s local office. He negotiated the deal, along with WillBalthrope in Marcus & Millichap’s Dallas office. Bascom Groupwas represented internally by Jeffrey Fuller and Han Jang

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Epstein notes the acquisition of The Retreat at Canyon Springsalso represents the third receivership sale the Bathrope/Epsteinteam has handled recently in San Antonio. “There was a tremendousamount of interest because this is a one-of-a kind, class A asset,and everyone knew it would be a sale because it was inreceivership,” he says.

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Epstein tells GlobeSt. that Bascom Group beat out 21 otherperspective buyers to nab The Retreat at Canyon Springs.“Throughout the process, Bascom Group showed a lot of passion forthe asset,” he says, adding that the firm was willing to beflexible with its terms to make the seller comfortable. “From thevery beginning, they offered assurance that they would get the dealdone.” With this acquisition, Bascom Group now owns 25 propertiesin the Lone Star State totaling 9,173 units.

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Constructed in 2001, The Retreat at Canyon Springs is located at24245 Wilderness Oak in the exclusive Stone Oak master-plannedcommunity. The 4,380-acre community, located in the heart of northcentral San Antonio, offers some of San Antonio's strongestdemographics and high-end living with an average household incomeexceeding $140,000. It is home to several large employers,corporate headquarters, high-end retail, outdoor entertainment andconstant new development.

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The Retreat at Canyon Springs is situated on 32.2 acres. Theproperty offers a mix of one, two, three and four-bedroom unitsranging from 795 square feet to 1,935 square feet. Rents range from$950 to $2,177 per month.

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All units have direct access garages and the majority of theunits front the Canyon Springs golf course. Unit interiors feature9 and 10-foot ceilings, fully-equipped kitchens, crown molding,granite counter tops, large oval Jacuzzi tubs, fireplaces,washer/dryer connections and private balconies or patios.

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The property boasts extensive common area amenities including:swimming pools and spa, children's playground, basketball court,tennis courts, a 10,000-square-foot clubhouse with business center,fitness center, movie theater, tanning salon, barbeques, billiardroom, putting green and gazebo.

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Epstein notes that The Retreat at Canyon Springs had some downunits and some deferred maintenance. He estimates the new ownerwill need to invest roughly $2 million to spruce up theproperty.

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The upside is considerable, however. Epstein notes theproperty’s occupancy is in the mid to high 80% range – the lowestin the submarket – and the rental rates are roughly 80 cents persquare foot – also the lowest in the submarket. “There isdrastic upside in economics through increased rental rates andincreased occupancy,” he says.

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Bascom Group has tapped GreyStone Asset Management to handleonsite property management.

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